Companies and Markets

The market snapped the three-day winning streak as selling emerged in IT, bank and consumer durables stocks on weak global cues. The sentiments were hit after the US Federal Reserve raised interest rates for the second time this year and hinted at two more hikes in 2018. The Sensex fell 139.34 points, or 0.39 per cent, to settle at 35,599.82 while the Nifty 50 fell 48.65 points, or 0.45 per cent, to settle at 10,808.05. The BSE Mid-Cap index fell 0.08 per cent Small-Cap rose 0.07 per cent. Both these indices outperformed the Sensex.

Housing finance companies (HFCs) have been on the investors radar ever since the Narendra Modi government took office in 2014. The government’s massive housing construction plan under the Housing for All scheme was seen as a major positive for the sector. This, along with a host of enabling legislations and policies like RERA and liberal interest subsidy in a falling interest rate regime has helped many housing finance stocks to move up significantly.

For private life insurers, financial year 2018-19 started on a flat note as they recorded a mere one per cent growth in individual new business premium in the first couple of months.

Private life insurers underwrote an individual adjusted first year premium of Rs 3,458 crore in April and May this year compared to Rs 3,408 crore in corresponding period of last year, according to monthly data released by Life Insurance Council. The new business premium in the previous year had witnessed strong growth on account of demonetisation-related inflows.

After kickstarting consolidation in the oil sector, the government plans to undertake a similar exercise in the power sector this year, allowing state-owned NTPC to buy out the entire central government’s equity in hydropower generator SJVNL.

The market closed marginally higher after a highly volatile trade with the Sensex ending 46.64 points or 0.13 per cent higher at 35,739.16, the Nifty 50 index rose 13.85 points or 0.13 per cent to settle at 10,856. The S&P BSE Mid-Cap index fell 0.46 per cent whereas the Small-Cap index fell 0.21 per cent. Both these indices underperformed the Sensex. The market breadth was negative as 1,297 shares rose and 1,380 shares fell. The markets opened higher but gradually lost steam as profit taking set after five consecutive days of positive advance decline ratio of 0.94.

German chemicals and pharma major Bayer Group has launched the process for over Rs 1,300-crore open offer to acquire up to 26 per cent additional stake in Monsanto India, following global acquisition of the US biotech firm for $63 billion.

Bayer AG, along with its Indian arm Bayer CropScience, has proposed to buy up to 44,88,315 shares, representing 26 per cent of the fully diluted voting equity share capital of Monsanto India, according to a regulatory filing.

The open offer is set at Rs 2,926.87 a share and the maximum size of the offer will be Rs 1,313.67 crore.

After announcing a Rs 466-rore Rites IPO this week, the government is looking to raise Rs 8,400 crore through Bharat 22 ETF Further Fund Offer (FFO), which is being managed by ICICI Prudential Asset Management Company.

Bharat 22 ETF FFO to raise Rs 6,000 crore, with a green-shoe option to retain Rs 2,400 crore more, opens on June 19 and closes on June 22.

Having secured a licence, Neyveli Lignite Corporation will be independently trading in the power market through a power trading arm. The company hopes that the new development will double its revenue from trading.

NLC has secured a Category I licence for power trading from Central Electricity Regulatory Commission last week. With this licence, the company can independently trade in the power market.

“As a part of its business promotion and diversification plan NLCIL has joined the league of Accredited Power Traders in the country,” the company said.

Brokerages are getting bullish on pharmaceutical stocks after the recent rally and have raised price targets of bluechip pharma stocks. They expect pharma earnings to grow 22 per cent year-on-year in the current financial year, thanks to easing US FDA restrictions, moderation in price fall and product launches lined up for the upcoming quarters.

Hong Kong-based branches of Punjab National Bank and Indian Overseas Bank have been put under enhanced supervisory oversight and barred from proactively soliciting customer deposits by the Hong Kong Monetary Authority as the capital adequacy ratio of the two lenders fell below the regulatory requirements.